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And again!Someone is looking to buy over 1M shares,....
I believe there is more to this deal... Let see.....
There are exemptions to the rule. It depends on the type of reorganization that could be propose.You have a valid point but we need to know the details of this sale. Let see what happen....
Very good news! Look at Crealta Pharmaceuticals management team! This guys sure know how to sell drugs and the company! I really wish for a recap and a merge(So they take advantage of over $300M in NOL-tax assets) with Savient!.
"Previously, Ed was CEO of Actient Pharmaceuticals. Ed founded Actient in partnership with GTCR, and together with the company management team, built a high growth urology specialty company which was acquired by Auxilium Pharmaceuticals in April, 2013."
http://crealtapharma.com/management/
Someone is trying to buy over 1M shares...
For over 2 hours I keep seeing a bid for over 1M shares that come and go at 0.016 but nobody is willing to sell. Did somebody know something?? Do we have a fight between bidders??
Can you imagine if the bid go over $250M??
We got news! I like this part....
"If Savient's process to sell all or substantially all of its assets results in a purchase price that exceeds $60 million (such excess amounts, the "Overbid Amounts"), 3% of the first $10 million of any such Overbid Amounts and 4% of any additional Overbid Amounts would be used to fund distributions to unsecured creditors pursuant to a confirmed Plan, subject to an aggregate cap of $750,000;"
http://finance.yahoo.com/news/savient-reaches-agreement-cash-collateral-052800787.html
Based on my previous experience with different BK plays, no news means that bidders don't want to be name or a lack of transparency which would explain why the selling pressure today. This drug is unique and can sell over 100 Million per year easily with the right marketing team from a Big Pharm but not with the #@$#@%* at Savient. Let see if we get news in the afternoon....
PS: If no bidders or lower bids they would have already cancel the auction.
Great! Thank you very much!
I remember following you in WAMU BK. You did a great job!! I wonder how many bidders came forward....
And the bidders are? Sshhhhhh!
wow! first time I see this.
Based on your previous post is clear that this BK situation is totally new for you. You need to read more about BK procedures and CH11 auctions. Right now the situation is pretty clear...
1- SVNT management are $#@#$ and don't have a $#@$ clue how to commercialized an orphan drug.
2- SVNT management got into this mess when they raised too much money using debt instead of equity
3- All the big pharms that had an interest in SVNT patents saw how stupid this guys were running SVNT so they said NO to their absurd potential BUYOUT price and waited for their failure. Big pharms knew the game pretty well.
4- Now in less than two years SVNT is in BK and if my guess turn to be right, I expect big pharms to move forward and grab this nice orphan drug that is the only available and is charge at a nice premium. And so far the benefits are good because you have people willing to pay the price(obviously with medicare/insurance coverage). So all a Big Pharm need to do is use their marketing soldiers and grab an extra couple thousands more patients and boom... You have an orphan drug that can sell(with the right marketing team) between a 150-300M per year in the US and Europe.
PS: Once you grab the KRYSTEXXA patents you can go back into the lab and play with the formula in order to expand their label and patents protection in the future....
Pure gambling! My bet is that more bidders will come forward and the pps will soar on speculation. You have to remember that buying assets in BK is totally different from the regular buyout. In BK they could get the patents and nothing else( no employees,no previous liabilities and no extra BS!!! from Savient corporation). In the past is obvious that big pharms didn't believe that SVNT was worth more that 500M. That why you never got the BUYOUT news. But now the story is different. Any big pharm can throw 200-300M for the patents and move on.
Because one thing is for sure, SVNT patents are worth more than 55M but less than 400M in my opinion. But nobody wanted SVNT structure,employees and liabilities. And finally through the BK process they can get SVNT patents free and clear.
Let see what happen....
Bid deadline: DEC 6....Potential Bidders
Usually in this type of auctions(BK process) bidders come forward on the last day. So with this in mind let try to have an idea of the potential bidders from previous news.
Bristol-Myers Squibb and Novartis in 2010
"Bristol-Myers Squibb Co. and Novartis AG both looked at acquiring Savient and passed because of concern about price, according to two people with knowledge of the matter, who declined to be identified because the talks are private."
http://www.bloomberg.com/news/2010-10-25/savient-says-auction-process-did-not-result-in-a-sale-of-the-drug-company.html
Rumors and speculation: Abbott, Roche, Amgen, J&J, Pfizer
"Schwartz said that the drug would fit in with companies such as Abbott, Bristol-Myers Squibb, Roche, Amgen, Johnson & Johnson and Pfizer."
http://www.firstwordpharma.com/node/380057?tsid=17#axzz2mQrfFVgs
I believe that at least two bidders will come forward. Let see what happen....
Hard to say... bidders have until tomorrow Aug 9 to come forward with their offers against Lowes. Bidders are going to wait until the last minute to submit their offers so I expect that we should get some news during the weekend.
Good news about other Bidders....
UPDATE: Orchard Supply CFO Says Lenders Helped Boost Lowe's Bid
By Jacqueline Palank
A competing bid from Orchard Supply Hardware Corp.'s (OSHWQ) lenders helped push Lowe's Cos.' (LOW) offer for the hardware chain's assets to $205 million from $190 million, Orchard's chief financial officer testified in court Monday afternoon.
Orchard CFO Chris D. Newman said weeks before the company's Chapter 11 filing, it was in talks with three potential buyers: Lowe's, a lender group that's now led by Gleacher Products Corp. and an undisclosed "financial buyer."
Only Lowe's and the lenders submitted offers, Mr. Newman told the Wilmington, Del., bankruptcy court, but Lowe's dropped its offer after the lenders rejected it. According to Mr. Newman, that is because a consensual deal was "a prime consideration" for Lowe's.
"Lowe's was clear at every point in the process that they didn't want this to be a fight," he said. "They wanted it to be a solution and a process that the company's creditors and term lenders were supportive of."
While Mr. Newman said the lenders' offer to forgive debt in exchange for Orchard's assets "needed to be more fully fleshed out," he said it was clear that one flaw of the bid was that "there would have been some level of creditors left behind."
The lenders said they would throw their support to a Lowe's bid if the purchase price increased as well as if they could then provide Orchard with bankruptcy financing, Mr. Newman said. He said he and Orchard Chief Executive Mark Baker "got on a plane" to take those terms to Lowe's executives.
"At the meeting, Mark and I helped the Lowe's team understand why we thought it was the appropriate thing to do," Mr. Newman said. If the purchase price went up to $205 million, "there would not be issues from lenders."
After meeting for about an hour and a half, Mr. Newman, formerly the CFO of home-decor chain Restoration Hardware Inc., said the Lowe's executives left to discuss a deal with the company's board of directors. He said the board approved the new bid "later that afternoon."
Reached Monday afternoon, a Lowe's spokesman confirmed that it is "important to Lowe's that we have the support of Orchard management as well as lenders" for a sale.
Orchard sought Chapter 11 protection on June 17 with Lowe's $205 million offer in hand and support from its lenders for that offer. The home-improvement retailer's bid is subject to rival offers at an Aug. 14 auction.
As for that third potential buyer, attorneys said its name is subject to a confidentiality agreement and can't be disclosed. However, they did say the potential buyer is active in the distressed investing field.
Mr. Newman's testimony came in a battle over Orchard's $176.3 million bankruptcy-financing package, which he said helped Orchard gain the confidence of its vendors in the days after its bankruptcy filing but which unsecured creditors say is unnecessary and expensive.
The lenders who originally sought to purchase Orchard have pledged $12 million of the bankruptcy financing, while other lenders led by Wells Fargo would contribute the rest.
Founded in 1931 in San Jose, Calif., Orchard Supply completed its spinoff from Sears at the beginning of 2012. The company had 91 stores in California and Oregon at the time of its June 17 bankruptcy filing, but it has since received court approval to close eight underperforming stores in California.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Jacqueline Palank at jacqueline.palank@dowjones.com.
http://online.wsj.com/article/BT-CO-20130715-709983.html?mod=googlenews_wsj
Agree! Also you forgot to mention that Sears offered $308M + Debt that was around $107M. So Sears actually paid $415M for 61 stores in 1996.
$205M + 45M in account payables is the steal of the year!!. IMO an offer around $290-320M + account payables for 75-80 stores is more realistic and more inline with OSH value. With that in mind I keep saying: The real play here is with the preferred shares(OSHQE).
Tjohn are you Jnivard from Yahoo MB??
If you are then I have one stock that could raise as high as TGIC did in the past or maybe higher. Is OSHQE here is the IHUB MB:
http://ih.advfn.com/p.php?pid=squote&symbol=oshqe
Orchard supply is in chapter 11 and is going to be sold to the highest bidder. So far Lowe's is the initial bidder. OSHQE are the preferred shares.
August Auction Is Set for Orchard Supply Hardware Stores
Bankruptcy Judge Establishes Lowe's as Lead Bidder With $205 Million Offer for Chain.
Orchard Supply Hardware OSHWQ +3.63% Stores won bankruptcy-court approval to put itself on the auction block next month with a $205 million leading bid from Lowe's Cos. LOW +0.97%
The bankruptcy judge in the case on Monday authorized Orchard Supply to hold an Aug. 14 auction at which Lowe's will serve as stalking horse, or lead bidder, for at least 60 hardware and garden stores, court papers show.
Lowe's has said it plans to operate Orchard Supply as a stand-alone business with the same name and management team.
U.S. Bankruptcy Court Judge Christopher S. Sontchi said he would consider the winning bid at an Aug. 20 sale hearing, just two months after Orchard Supply sought Chapter 11 bankruptcy protection with the Lowe's offer in hand.
Under the auction rules, rival bidders must submit their offers by Aug. 9. Those offers must exceed Lowe's $205 million bid by $9 million. That covers $7 million in bidder protections payable to Lowe's if it loses, plus a $2 million overbid.
Founded in 1931 in San Jose, Calif., Orchard Supply completed its spinoff from Sears Holdings Corp. SHLD +2.52% at the beginning of 2012. The company had 91 stores in California and Oregon at the time of its June 17 bankruptcy filing, but it has since received court approval to close eight underperforming stores in California. Store-closing sales are now under way.
To motivate its leaders to secure the best possible offer for its stores, Orchard Supply will return to bankruptcy court next week for approval of an executive bonus plan.
Four of Orchard Supply's top executives, including President and Chief Executive Mark Baker and Chief Financial Officer Chris Newman, would be eligible to receive as much as $3.1 million if the ultimate sale price tops $300 million.
A sale of at least $200 million would bring in nearly $2.2 million in bonuses for the executives under the proposed plan. Lowe's has committed to cover 50% of the bonus payments if it emerges as the winning bidder at next month's auction.
Also on the agenda for next week's hearing is a $176.3 million bankruptcy loan from lenders led by Wells Fargo Bank WFC -0.82% . As is typical in Chapter 11, Orchard Supply received court approval to access some of the financing shortly after its bankruptcy filing but must return to court in order to draw the full amount.
—Rachel Feintzeig contributed to this article.
http://online.wsj.com/article/SB10001424127887324507404578595530610090000.html
Remember, Anything above $270M will go to the Preferred shares(OSHQE),up to $20M. So if there is an offer for $290M or higher then Preferred shares will be paid in full(~4.16 per share) and everything else will go to the commons. I believe that preferred will get paid but not the commons. I bought OSHQE...let see what happen in the next 40 days.
News: Bidders deadline and auction date...
By Marie Beaudette
On Monday, Orchard Supply Hardware Stores Corp. will ask a Wilmington, Del., bankruptcy judge for permission to auction its assets, with rival home-improvement chain Lowe's Cos. ( LOW ) kicking off bidding with a $205 million offer.
Orchard Supply is seeking to auction its assets on Aug. 14, followed by an Aug. 20 sale hearing. The company is also asking the court to set an Aug. 9 deadline for would-be bidders to submit their initial offers ahead of the auction.
Lowe's$205 million offer for at least 60 Orchard Supply stores would serve as the auction's lead bid. At Monday's hearing, Orchard Supply will ask for permission to pay Lowe's a $6.15 million breakup fee if it is bested at auction.
Lowe's has said it plans to operate Orchard Supply as a standalone business, keeping its brand name and current management team.
Founded in 1931 in San Jose, Calif., Orchard Supply completed a spinoff from Sears Holdings Corp. ( SHLD ) at the beginning of 2012. The company currently operates 89 hardware and garden stores in California and two in Oregon.
The company, which filed for Chapter 11 protection last month, blamed its financial troubles on "extensive debt," declining sales during the economic downturn and the increased costs it faced as it completed its spinoff and went public.
Read more: http://www.nasdaq.com/article/week-ahead-orchard-supply-seeks-bankruptcy-auction-20130705-00209#ixzz2YCGoXDTO
The Preferred shares are the only equity that could recover if other bidders make an offer for at least 80 stores...
Check the Ihub MB for the Preferred shares, OSHQE
http://investorshub.advfn.com/Orchard-Supply-Hdwr-Stores-Preferred-Series-A-OSHQE-26793/
Thanks,
Good luck to you too. And like I said previously my bet is with the potential recovery for the preferred shares but not the commons.
More bidders could come forward and outbid Lowes.
With the housing recovery, Orchard could be profitable again.IMO Orchard could be more valuable to Equity Firms(HFs)that could take it private, fixed it and do an IPO later(2015 or 2016).
Also I see potential for another Industry player that is looking for growth to come forward and outbid Lowe's. With this in mind I believe that we could see a fight for Orchard assets between 3-5 players. I go with Lowe's and another industry player + 1-3 Equity firms.... Let see....
Lowes offer:
205M in cash + account payables(suppliers)~45M for at least 60 stores(so we are talking about ~$3.4M per store). So we are talking about an offer around ~250M for 60 stores.
If another bidder comes forward with the same avg. value per store but for let say 80 stores and the same money for the account payables(suppliers)we have the following:
80 stores x $3.4M per store= $272M in cash+ account payables= ~317M
With an offer like that preferred shares will recover something but commons still get zero!
Im betting on the prefered shares recovery but nothing for the commons. Bought last week at avg. 10-11 cents.
We have to remember that preferred shares full value is $20M($4.16 x 4.8M O/S)
Your opinion is correct only and only if nobody comes forward with a higher offer than Lowe's.
Lowes offer:
205M in cash + account payables(suppliers)~45M for at least 60 stores(so we are talking about ~$3.4M per store). So we are talking about an offer around ~250M for 60 stores.
If another bidder comes forward with the same avg. value per store but for let say 80 stores and the same money for the account payables(suppliers)we have the following:
80 stores x $3.4M per store= $272M in cash+ account payables= ~317M
With an offer like that preferred shares will recover something but commons still get zero!
Im betting on the prefered shares recovery but nothing for the commons. Bought last week at avg. 10-11 cents.
We have to remember that preferred shares full value is $20M($4.16 x 4.8M O/S)
8-K out! NO more Debt...
On April 3, 2013, we entered into a letter agreement, or Letter Agreement, relating to the loan and security agreement dated March 26, 2012, or the Loan Agreement, with Oxford Finance Corporation and Silicon Valley Bank, or, collectively, the Lenders. Pursuant to the terms of the Letter Agreement: (i) we paid all amounts due and owing so as to discharge our obligations thereunder, (ii) we waived any rights to seek additional credit extensions or unfunded commitments under the Loan Agreement, and (iii) the security interest granted to Lenders relating to substantially all of our assets, other than our intellectual property, was terminated.
The description of the Letter Agreement contained herein does not purport to be complete and is qualified in its entirety by reference to the Letter Agreement , a copy of which will be included as an Exhibit to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, and is incorporated by reference herein.
http://www.sec.gov/Archives/edgar/data/1158223/000110465913027101/a13-9500_18k.htm
WSJ: Anemia Drug Had Early Side Effects
By THOMAS M. BURTON
Life-threatening reactions to the anemia drug Omontys began appearing within months of when the treatment went on the market, according to a review of regulatory records.
Adverse-event reports to the Food and Drug Administration, obtained under the federal Freedom of Information Act, show for the first time how early the drug's worrisome reactions emerged. Omontys, from Affymax Inc. AFFY +10.89% and Takeda Pharmaceutical Co. 4502.TO -2.14% Ltd., was linked to allergic reactions and respiratory distress beginning in August 2012, shortly after it went on the U.S. market in late April.
The drug, which is used in kidney dialysis patients, is now in regulatory limbo. Last month, Affymax recalled all existing lots of the drug on account of the severe reactions and deaths—a move that sent its shares plummeting. But the FDA didn't officially pull the drug from the market.
The agency is now evaluating various factors to decide whether the drug can be sold in the future. Earlier this month, Affymax said it would cut its workforce by 75% and is considering selling itself.
A total of 98 "adverse events" tied to the drug were reported to the FDA by Feb. 22 of this year, the day before the recall. There were 12 deaths among the reports to the FDA, but the cause of death wasn't specified, and the patients getting dialysis and Omontys are by definition already very sick. Takeda said there were five deaths that the companies considered in deciding to recall Omontys lots on Feb. 23.
The events included anaphylaxis, an acute allergic reaction in which the airways constrict and patients struggle to breathe, blood pressure plummets and the heart may beat erratically and be unable to pump enough blood.
Affymax's chief medical officer, Anne-Marie Duliege, said the company has complied with all regulatory requirements and that it is working closely with the FDA. She declined further comment.
Omontys, generically called peginesatide, has been used in more than 25,000 patients and is generally more convenient than other anemia drugs in that it can be infused once monthly. Other drugs generally are given a dozen or more times a month.
In an interview shortly after the lots were recalled, Affymax's chief executive, John A. Orwin, said, "In the fall, we had seen a few cases that were more severe." At that time, the company contacted the FDA about adding a warning on the drug's packaging. The company said these reactions occurred in some patients within 30 minutes of the drug's infusion.
In that interview, Mr. Orwin said the company was studying whether a manufacturing flaw, or the drug itself, was responsible for the patients' reactions. Mr. Orwin didn't respond to several requests for comment and information in recent days. Takeda said it is working closely with the FDA.
The first adverse event report was received at the FDA Aug. 14. It said Omontys was suspected as having caused a 57-year-old woman to go into a life-threatening anaphylactic reaction.
Within days, other cases popped up across the country as the drug began being used more broadly at U.S. dialysis centers. A report to the FDA on Aug. 17 talked about a woman hospitalized for a "hypersensitivity reaction" who struggled to breathe. Another on Aug. 20 reported that a 61-year-old man had a life-threatening anaphylactic reaction.
By Oct. 31 of last year, Affymax proposed to the FDA that the drug's label include a warning related to serious allergic reactions, and such language was added to the label.
Fresenius Medical Care AG, FME.XE -0.45% which operates 1,800 dialysis facilities in the U.S., said it has used Omontys in over 18,000 patients.
It said that shortly after it expanded use of the drug in February, on Feb. 11 "five adverse event reports of allergic type reactions were received," according to a company spokesman. Soon after, Fresenius decided to "pause" in its use of Omontys, the spokesman said.
http://online.wsj.com/article/SB10001424127887323501004578390753349980838.html
Triad Guaranty Inc. Announces Filing of Form 15 with the SEC to Deregister Shares and Change in Principal Business Address
WINSTON-SALEM, N.C., Jan. 28, 2013 /PRNewswire/ -- Triad Guaranty Inc. (the "Company") (TGIC) today will file a Form 15 with the U.S. Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934.
The Company is eligible to deregister its common stock because it had fewer than 300 holders of record of its common stock at the beginning of its current fiscal year. Upon the filing of the Form 15, the Company's obligation to file certain reports with the SEC, including Forms 10-K, 10-Q and 8-K, will be automatically suspended. Other filing requirements will terminate upon the effective date of the deregistration, which is expected to occur 90 days after the filing of the Form 15.
The Company's Board of Directors believes that the anticipated accounting, legal and administrative cost savings from deregistration substantially outweigh any benefits of continued registration and are in the best interests of both the Company and the holders of its common stock. As previously reported by the Company on December 11, 2012, the Company's mortgage insurer subsidiary, Triad Guaranty Insurance Corporation ("TGIC"), has been placed into rehabilitation, whereby the Illinois Department of Insurance has been vested with possession and control over all of TGIC's assets and operations, and the Company no longer has any oversight or authority over TGIC and its business affairs. As a result, the Company has no significant operating activities and limited remaining cash and other assets on hand. Going forward, the Company expects to explore various strategic alternatives, and in the absence of an acceptable option, anticipates seeking to dissolve the corporation either through Chapter 11, Chapter 7 or otherwise.
The Company expects that its common stock will continue to be quoted on the OTC Pink tier operated by OTC Markets Group, a centralized electronic quotation service for over-the-counter securities, following its deregistration, so long as market makers demonstrate an interest in trading in the Company's common stock. However, there is no assurance that trading in the Company's common stock will continue on the OTC Pink tier or on any other securities exchange or quotation medium. Following deregistration, the Company does not expect to publish periodic financial information or furnish such information to its stockholders except as may be required by applicable laws.
Additionally, the Company announced that, effective immediately, the Company's principal business office has moved. The Company's new principal business address is:
Triad Guaranty Inc.
P.O. Box 100503
Birmingham, Alabama 35210
For more information, Company stockholders may access the Company's new website, www.triadguarantyinc.com, which is expected to be functioning by February 1, 2013.
Certain of the statements contained in this release are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include estimates and assumptions related to economic, competitive, regulatory, operational and legislative developments. These forward-looking statements are subject to change, uncertainty and circumstances that are, in many instances, beyond our control and they have been made based upon our current expectations and beliefs concerning future developments and their potential effect on us. Actual developments and their results could differ materially from those expected by us, depending on the outcome of a number of factors, including: our ability to continue as a going concern and various other factors described under "Risk Factors" and in the "Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995" in our Annual Report on Form 10-K for the year ended December 31, 2011 and in other reports and statements filed with the Securities and Exchange Commission. Forward-looking statements are based upon our current expectations and beliefs concerning future events and we undertake no obligation to update or revise any forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made, except as otherwise required by law.
http://finance.yahoo.com/news/triad-guaranty-inc-announces-filing-220100880.html
Agree, Transparency is the key here. Let see what the earnings show...
Triad Guaranty Inc. to Release Third Quarter Results...
WINSTON-SALEM, N.C., Nov. 5, 2012 /PRNewswire/ -- Triad Guaranty Inc. (TGIC) will release 2012 third quarter results before the market opens on Wednesday, November 14, 2012. Concurrent with the release, supplemental information on the 2012 third quarter results will be posted to our web site www.triadguaranty.com. The Company does not plan to hold a conference call.
For more information on Triad Guaranty Inc., please visit the Company's web site at http://www.triadguaranty.com.
Relevant to TGIC: Genworth 3Q earnings highlights.....
From their press release: Third Quarter 2012 Results
*** Their earnings are really good, but here is the part that is very relevant to TGIC portfolio.....
U.S. Mortgage Insurance Segment:
"Total flow delinquencies decreased four percent sequentially and 19 percent versus the prior year. New flow delinquencies increased approximately five percent from the prior quarter reflecting seasonal development but declined approximately 24 percent from the prior year, reflecting the continued burn through of delinquencies from the 2005 to 2008 book years. The flow average reserve per delinquency was $30,000, down slightly from the prior quarter."
IMO this should indicate that TGIC could report:
- Over 20% decline in delinquencies from their 2005 to half 2008 book years( they entered runoff in July 2008)
- And lower average reserve per delinquency
This provide more indication around TGIC solvency and their potential comeback! No wonder why we are over 200% since september( 0.06 cents)
http://finance.yahoo.com/mbview/threadview/?&bn=434ecb7f-b070-33a8-8878-f270c096d142&tid=1351630471151-6fc653c4-f50d-4b8d-8420-5d624b5a5a6d&tls=la%2Cd%2C0
US Home Prices Climb for Seventh Straight Month
Published: Tuesday, 30 Oct 2012 | 9:10 AM ET
U.S. single-family home prices rose in August, the latest sign that the housing market is on the mend, a closely watched survey showed on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.5 percent on a seasonally adjusted basis, in line with economists' forecasts.
It was the seventh straight month of increases, extending the longest continuous string of gains since prices were boosted by the homebuyer tax credit in 2009 and 2010.
The sustained good news in home prices "makes us optimistic for continued recovery in the housing market," David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement.
"Even as we end the seasonally strong home buying period, the statistics are positive," said Blitzer.
On a non-seasonally adjusted basis, prices fared better, gaining 0.9 percent.
Prices in the 20 cities climbed 2 percent year-over-year, topping expectations for a 1.9 percent increase.
Robert Gray, managing partner of real estate private equity firm TerraCap Management, said the residential recovery bodes well for the commercial sector: "We think the commercial real estate market, including hotels, office complexes and some retail properties, will now start to recover. Those who missed the boat on the residential recovery would be wise to look into commercial real estate."
S&P 500 futures edged up following the data, but the stock market will be closed for a second day in a row in the wake of a powerful storm that hit the east coast.
Compared to a year ago, prices in Phoenix surged 18.8 percent, the fourth month in a row the hard-hit city has seen double-digit yearly gains, the report said.
Prices in Las Vegas — also one of the more distressed areas in the years since the end of the housing boom - were up 0.9 percent compared to a year ago, the first annual increase since January 2007.
Of the 20 cities in the index, three saw a yearly decline in prices, with Atlanta faring the worst, down 6.1 percent.
http://www.cnbc.com/id/49607886
Hedge Funds Drawn to Fannie-Freddie Risk-Sharing Plan: Mortgages
http://washpost.bloomberg.com/Story?docId=1376-MCIHV907SXKX01-6FBBVOO0OA3NJOLLA8CV4A82P2
Jody Shenn and Heather PerlbergOct 29, 2012 10:27 am ET
Oct. 29 (Bloomberg) -- Bond buyers are vying with insurers to strike deals with Fannie Mae and Freddie Mac as their regulator seeks to draw private capital to the government- dominated mortgage market.
The taxpayer-supported companies, which own or guarantee $5 trillion of residential debt, have held discussions with NMI Holdings Inc., a new mortgage insurer that raised $500 million in April, as they explore new ways of sharing risks. American International Group Inc. is also interested, while Angelo Gordon & Co. and Pine River Capital Management LP are among fixed- income investors that could jump on the opportunity.
Fannie Mae and Freddie Mac, which help finance about two- thirds of new U.S. home loans, are seeking to shrink their footprint and reduce the danger to taxpayers four years after being rescued. While no deals have been announced, the Federal Housing Finance Agency says progress is underway. The regulator in March set a target of last month for their initiation.
“It’s been a really long time coming,” said Merrill Ross, a Wunderlich Securities Inc. analyst who covers real estate investment trusts that could be participants.
Fannie Mae and Freddie Mac have been backed by the U.S. after being seized in 2008 following the housing collapse. While the FHFA said in an Oct. 26 statement the companies won’t require any support after this year in most scenarios, they’ve received $137 billion of aid to help the recovery.
Taxpayer Responsibility
“The taxpayer is directly on the hook for nine out of every 10 loans getting made,” Michael Heid, president of Wells Fargo & Co.’s home-loan unit said at the Mortgage Bankers Association annual conference last week. That includes loans backed by the Federal Housing Administration, and other agencies.
While there are a lot of similarities between proposals to replace Fannie Mae and Freddie Mac, there’s been little urgency among policy makers, he said. The plans would involve government insurance that guards against catastrophic losses.
FHFA Acting Director Edward J. DeMarco is seeking to reduce Fannie Mae and Freddie Mac’s role in the market as lawmakers fail to take action. One measure has been to increase the fees they charge to guarantee mortgage securities.
He’s also looking to have insurers or bond investors bear losses before or along with the companies on pools of loans.
Making Progress
“We are moving forward steadily and expect to continue making progress in the coming months,” Denise Dunckel, an FHFA spokeswoman, said last week in an e-mailed statement. “Risk sharing is a complex process that requires time to assess market opportunities, structural considerations, make operational changes and develop proper risk metrics and controls,” she said.
Brad German, a spokesman for McLean, Virginia-based Freddie Mac, and Andrew Wilson, a spokesman for Washington-based Fannie Mae, declined to comment.
The companies may turn to investors in the $1 trillion market for home-loan bonds without government backing, who are seeking high-yielding debt after the market shrunk by $1.3 trillion since 2007. While some mortgage insurers are facing financial challenges, “others may have the capital capacity to insure a portion of the mortgage credit risk currently retained” by Fannie Mae and Freddie Mac, the FHFA said in a February report about their future before a broader overhaul.
Insurers Stopped
All but one of the mortgage insurers writing coverage before foreclosures began soaring in 2007 have stopped paying claims in full or been downgraded to speculative-grade ratings, potentially limiting the pool. The other is United Guaranty, a unit of AIG. The parent was also rescued by the U.S. in 2008.
NMI is seeking to join Essent Guaranty Inc. in entering the business. Essent, whose backers included Goldman Sachs Group Inc. and reinsurer PartnerRe Ltd., began writing traditional policies for Fannie Mae and Freddie Mac last year.
Janice Daue Walker, a spokeswoman for Essent, declined to comment.
NMI, which is seeking approval to write policies through a unit called National MI, signaled to one of the companies the potential premiums it might charge on a specific pool of home loans, Chief Executive Officer Bradley Shuster said in an interview at the mortgage conference.
‘It’s a potential way for us to really jump-start the ramp up of our business,” said Shuster, who’s seeking to register Emeryville, California-based NMI’s shares for public trading next year.
Discussions Involve
The discussions involve recent mortgages with loan-to-value ratios, or LTVs, of less than 80 percent, he said. Insurers typically focus on debt with higher ratios because Fannie Mae and Freddie Mac’s federal charters only require such protection when homebuyers use downpayments of less than 20 percent.
The guarantors, which usually take the initial losses after foreclosures, mostly write policies on a loan-by-loan basis, rather than in bulk. The FHFA has said that Fannie Mae and Freddie Mac should also consider getting insurance on individual loans that covers more of the losses after foreclosure.
“United Guaranty welcomes the chance to discuss these opportunities,” CEO Kim Garland said in a statement. “Having private mortgage insurers insure loans with less than 80 percent LTV would put more private capital at risk in a non-disruptive manner while increasing the safety of mortgage system.”
Reinsurers may also be interested in participating in the bulk insurance deals, which would expand NMI’s capacity for them, said Shuster. Investors in NMI’s initial private share sale have the right to withdraw their money if it doesn’t receive approval to do traditional business with Fannie Mae or Freddie Mac by Jan. 17.
Template Structure
In the bond market, Freddie Mac already sells securities backed by apartment-building loans that it doesn’t guarantee, instead transferring to investors some of the risk from defaults on the underlying mortgages.
It also sells notes tied to the same pools of loans that it does guarantee. Those bonds are senior to the non-guaranteed debt, meaning they would only bear losses after the first securities are wiped out.
Fannie Mae and Freddie Mac could use that “senior- subordinated structure” as a template, Andrew Davidson, head of consulting and analytics firm Andrew Davidson & Co., said. They could also bundle credit-default swaps offering them protection on mortgage pools into bonds and sell those to investors.
Deals involving either bonds or credit derivatives could be “a very compelling opportunity for our investors,” said Jonathan Lieberman, head of residential-mortgage securities at New York-based Angelo Gordon, which oversees about $24 billion in private-equity funds, hedge funds and a REIT. “When they come to market, we will certainly be ready to look,” he said.
Stronger Underwriting
The transactions may be attractive because the housing market is recovering and there’s “much, much stronger underwriting” of mortgages being done, he said. Only 0.11 percent of loans guaranteed by Fannie Mae in 2011 were more than 90 days delinquent as of June 30, compared with 12.3 percent for 2008 debt, according to the company’s disclosures.
Hurdles include whether and how to structure deals to meet accounting and tax rules for REITs, according to Davidson.
Commodity Futures Trading Commission rules effective Oct. 12 also pose a challenge to the effort, Dow Jones reported this month. The CTFC later said it would exempt at least some securitizations using derivatives from the regulations, which could require new disclosures meant for so-called commodity pool operators.
Pine River and Metacapital Management LP, managers of two of the best-performing hedge funds in 2012, have told their investors they could be interested, according to a person familiar with the matter, who declined to be identified because the communications were private.
Deepak Narula, head of Metacapital and Patrick Clifford, a spokesman for Pine River, which oversees about $10 billion including through a publicly traded mortgage REIT called Two Harbors Investment Corp., declined to comment.
--With assistance from Clea Benson in Washington. Editors: Pierre Paulden, Rob Urban
Another extension! TGIC looking better....
This is the third extension the Department have done!
-From September to early October
- From early October to late October
- Now from late October to November 13
http://insurance.illinois.gov/hearings/2012/Doc101912.pdf
Order
This matter coming to be heard on the Department's Motion to extend the period of time for written submissions until November 13,2012.
It is hereby Ordered:
1. That the time for submission of written briefs is hereby extended to November 13,2012.
National Mortgage Insurance Gains Momentum, Targets Early 2013 Launch
New mortgage insurance company to meet the growing demand for private mortgage insurance
PR Newswire
EMERYVILLE, Calif., Oct. 22, 2012
EMERYVILLE, Calif., Oct. 22, 2012 /PRNewswire/ -- NMI Holdings, Inc. is well on its way to the early 2013 launch of a new private mortgage insurance company, National Mortgage Insurance Corporation (National MI), as the company makes solid advances in gaining the proper regulatory approvals from state and federal agencies. Earlier this year, NMI Holdings, Inc. raised $550 million in private capital for the new venture. National MI was founded by Bradley Shuster, chairman, president and CEO, and Jay Sherwood, executive vice president and chief financial officer of the company.
"The capital investment in National MI demonstrates that private investors are prepared to assume mortgage risk as the government looks to decrease its role in the mortgage insurance market," says Shuster. "The need for private mortgage insurance is growing and the return of private capital to the market at this critical time is a key component of the U.S. housing finance market recovery," he says.
A long-time mortgage insurance (MI) industry executive, Shuster has 35 years of experience in financial services, including as president of The PMI Group's international mortgage insurance and strategic investments. Earlier in his career, Shuster was a partner at Deloitte, LLP, where he served as partner-in-charge of Deloitte's Northern California insurance practice and mortgage banking practice.
"Private mortgage insurance is typically required on mortgages with a loan-to-value (LTV) ratio of 80 percent or more, and the mortgage insurance provider is usually chosen by the mortgage lender. Initiatives by the federal government to reduce Fannie Mae's and Freddie Mac's exposure to risk will benefit well-capitalized private mortgage insurers," Shuster notes, citing the Federal Housing Finance Agency's (FHFA's) proposal earlier this year to expand reliance on mortgage insurance for Fannie Mae and Freddie Mac loans.
http://www.fhfa.gov/webfiles/23408/02-28--2_FINAL_DeMarco_Testimony_SBC.pdf
"We are working towards gaining the necessary approvals from regulators, including state departments of insurance during the fourth quarter of this year, with a target launch of writing our first policy in early 2013," Shuster says. "National MI has been working closely with Fannie Mae, Freddie Mac and their regulators at the FHFA, and is making significant progress towards the goal of writing coverage in all 50 states," he adds.
In June 2012, National MI was approved to participate in an accelerated licensing process sponsored by the National Association of Insurance Commissioners (NAIC). The accelerated licensing process gives the company the ability to apply for insurance licenses in multiple states in a streamlined manner.
National MI has leased 24,000 square feet of office space in Emeryville, California in the San Francisco Bay Area. The newly formed company has added over 60 employees to date, and continues to hire across many departments. "National Mortgage Insurance has attracted experienced and talented individuals who have strong knowledge of financial services, residential mortgage and mortgage insurance markets," Shuster says.
The company's capital raise was privately structured through a Rule 144A equity offering. "The company's investors are comprised of experienced institutional and financial services market participants," notes CFO and EVP Sherwood. "Aside from the recent financial crisis, the private mortgage insurance industry has historically been a very attractive business segment. Upon receiving approvals, we seek to deploy over $500 million of capital and provide insurance capacity to support the lender marketplace," Sherwood says.
About National Mortgage Insurance
NMI Holdings, Inc., primarily through its subsidiaries, including National Mortgage Insurance Corporation (National MI), intends to offer mortgage insurance on a national basis after receipt of the requisite approvals from Fannie Mae, Freddie Mac and state regulators. The entity was created to build a private mortgage insurer delivering high quality customer service and strong investor results. The company's headquarters are in Emeryville, California. To learn more about National Mortgage Insurance, visit www.NationalMI.com.
Press Contact
Mary McGarity
Strategic Vantage Mortgage Public Relations
MaryMcGarity@StrategicVantage.com
(203) 513-2721
SOURCE NMI Holdings, Inc.
http://www.bizjournals.com/prnewswire/press_releases/2012/10/22/FL97178
TGIC quick facts....
* O/S 15,368,128 shares
* Risk to Capital with the corrective order 26.2(June 2012) down from 27.6(March 2012)
* As of June 30, 2012, the Company had a NOL carryforward on a regular tax basis of approximately $731.6 million.
* Shareholders have approved a Tax Benefits Preservation Plan ("Plan") and amended the TGI certificate of incorporation to help protect its ability to recognize certain potential tax benefits in future periods from net operating loss carryforwards and tax credits, as well as any net operating losses that may be generated in future periods (the "Tax Benefits").
* TGI is exploring strategies to acquire profitable, growing businesses and leverage its insurance industry knowledge, management expertise, and Net Operating Loss ("NOL") carryforwards that were generated on a consolidated basis with Triad in order to increase its future value for the benefit of its stockholders. No assurance can be given that TGI will be able to successfully implement such a strategy, or, if implemented, to increase its stockholder value.
* The positive impact on statutory surplus resulting from the second Corrective Order has resulted in Triad reporting a policyholders' surplus in its SAP financial statements of $230.3 million at June 30, 2012, as opposed to a deficiency in policyholders' surplus of $801.5 million on the same date had the second Corrective Order not been implemented.
*As we are operating in run-off and are issuing no new insurance commitments, our future results of operations largely depend on the amount of future premium that we earn less the amount of losses that we incur each period on the new defaults reported to us. In addition, our results may be significantly impacted by the favorable or adverse development of our loss reserves. Our results from operations will benefit if we are able to settle our loss reserves at a lesser amount than that reported on our balance sheet through loss mitigation, litigation and settlements with servicers. Conversely, our results from operations will be negatively impacted if the settled losses are greater than the loss reserves provided. Our results of operations also depend on a number of other factors, many of which are not under our control. These factors include:
· the conditions of the housing, mortgage and capital markets that have a direct impact on default rates, loss mitigation efforts, cure rates, and ultimately, the amount of claims settled;
· the overall general state of the economy and job market;
· persistency levels on our remaining insurance in force; and
· operating efficiencies.
* Our results of operations in run-off could also be impacted significantly by Federal government and private initiatives to limit foreclosures through loan modifications, refinancing mortgages at lower interest rates, or debt forgiveness. See the discussion below for further details on these initiatives. Lastly, our results of operations in run-off could be materially affected by our ability to recognize benefits from our NOL carryforwards.
http://sec.gov/Archives/edgar/data/911631/000091163112000025/form10q-2q2012.htm
Thanks. I strongly believe that Triad could be back with the current environment in favor of the Private Mortgage Insurers from the latest FHA decisions( more business to PMIs, higher fees, etc)...
Triad comments on coming back from their filings....
From the 10K(2011):
"TGI is exploring strategies to acquire profitable, growing businesses and leverage its insurance industry knowledge, management expertise, and Net Operating Loss (“NOL”) carryforwards that were generated on a consolidated basis with Triad in order to increase its value for the benefit of its stockholders. No assurance can be given that TGI will be able to successfully implement such a strategy, or, if implemented, to increase its stockholder value."
http://sec.gov/Archives/edgar/data/911631/000091163112000009/form10k-2011.htm
From 1Q(2012):
" TGI is exploring strategies to acquire profitable, growing businesses and leverage its insurance industry knowledge, management expertise, and Net Operating Loss (“NOL”) carryforwards that were generated on a consolidated basis with Triad in order to increase its value for the benefit of its stockholders. No assurance can be given that TGI will be able to successfully implement such a strategy, or, if implemented, to increase its stockholder value."
http://sec.gov/Archives/edgar/data/911631/000091163112000013/form10q-1q2012.htm
From 2Q(2012):
"TGI is exploring strategies to acquire profitable, growing businesses and leverage its insurance industry knowledge, management expertise, and Net Operating Loss ("NOL") carryforwards that were generated on a consolidated basis with Triad in order to increase its future value for the benefit of its stockholders. No assurance can be given that TGI will be able to successfully implement such a strategy, or, if implemented, to increase its stockholder value."
http://sec.gov/Archives/edgar/data/911631/000091163112000025/form10q-2q2012.htm
Are you planning on coming back and buy again?
Up 113% close at 0.16
So maybe the rumors about entering to Canada could be true....
Triad trying to enter Canadian market??
This is the first time I heard about it... Could this be true??
"As a result, Canada has seen more innovation in mortgage insurance in the last six months than in the previous five years. AIGUG is now in its final stages of regulatory approval and should be open for business in December. Two other U.S.-based mortgage insurers (PMI Group Inc. and Triad Guaranty Inc.) are close to completing the required approval process and will likely start business next year and spur even more competition."
http://thebabalaas.blogspot.com/2012/08/new-products-allow-easy-home-ownership.html
Large Green, I dont have the knowledge and experience that you have but I would like to throw my 2 cents....
IMHO, the Judge is playing the old game"Keep talking Im listening,Im a fair judge" IMO she already realized how corrupted BR and SNH are but the best way that EC has to crush them is by letting them talk and talk and talk..... So to me, she is just giving EC team, the opportunity to finally crush them and force them to settle......
From recent Articles:
"One of the most interesting parts about this drop is Transcept received several upgrades prior to the slide. First, on May 23rd TheStreet upgraded the company from sell to hold after downgrading Transcept two months earlier. Also on May 23rd, Zacks upgraded Transcept to strong buy citing investor confidence Intermezzo will be approved. The most recent upgrade by Lazard Capital cited an expectation of approval for Intermezzo, and a $29 price target along with a buy rating."
http://seekingalpha.com/article/278779-is-transcept-pharma-s-tumble-justified
"I estimate that the addressable market for the middle of the night awakening (MOTN) market in the U.S. is $1 billion or more: Intermezzo would be the only drug approved for this indication. I have to admit that I have no great confidence in my estimates on how rapidly sales will ramp. I am assuming a launch in 3Q of 2011 with only minimal sales of $8 million in 2011. My 2012 sales estimate is $50 million and my 2013 estimate is $125 million. These estimates are lower than Street estimates for 2011 of $20 to $25 million; for 2012 of $80 to $120 million; and for 2013 of $175 to $250 million."
http://seekingalpha.com/article/278837-what-happens-after-intermezzo-s-likely-fda-approval?source=yahoo